The invention relates to a method for preparing low-oxygen and high-purity titanium powder by utilizing industrial waste titanium and belongs to the field of nonferrous metal. The method comprises thefollowing process steps: A, performing pretreatment: pretreating the industrial waste titanium to remove various kinds of pollution from the surface; B, performing fusion cast molding: under the protection of inert atmosphere, melting the industrial waste titanium, stirring and standing for a period of time and casting to prepare a titanium anode plate; C, performing molten salt electrolysis: taking the titanium anode plate as an anode, taking metal nickel or metal titanium or carbon steel as a cathode, and performing constant current or pulse constant current electrolysis in molten salt containing low-valent titanium ions; and D, performing electrolysate treatment and packaging: after electrolysis, taking out a cathode product, performing acid washing, water washing and vacuum drying, and performing argon filling packaging in a glove box to obtain the low-oxygen and high-purity titanium powder. The low-oxygen and high-purity titanium powder can be obtained by adjusting the concentration of the low-valent titanium ions, the cathode current density and the electrolysis time, cooperating with vacuum drying and performing packaging in the glove box; and the method has the characteristics of short process flow, simplicity and convenience in operation, low energy consumption, low cost, high recycling rate of the waste titanium and the like.